NZ Retail Giants Pledge Responsible Use of Facial Recognition Technology

Several major New Zealand retailers have publicly committed to the responsible use of facial recognition technology (FRT), following a comprehensive report from the Office of the Privacy Commissioner (OPC). Executives from Briscoes, Bunnings, Farmers, Mitre 10, Michael Hill, One NZ, Spark, and The Warehouse signed a joint statement supporting the use of FRT in stores, provided that appropriate privacy safeguards are in place.

The commitment follows the OPC’s review of a six-month trial conducted by Foodstuffs North Island (FSNI) at 25 supermarket locations. According to the report, the trial processed more than 225 million facial scans and was associated with a significant reduction in serious violent incidents. As previously reported, FSNI credited the technology with preventing over 130 such incidents.

Privacy Oversight and Safeguards

Privacy Commissioner Michael Webster emphasized that FRT can only be acceptable under strict conditions. “FRT will only be acceptable if the use is necessary and the privacy risks are successfully managed,” Webster said. The OPC’s guidance includes immediate deletion of non-matching images, strict limits on who may be placed on watchlists, and requirements for signage and public awareness.

The FSNI trial generated 1,742 alerts, of which 1,208 were confirmed matches. Two instances of misidentification prompted an increase in the system’s matching threshold from 90 percent to 92.5 percent. The OPC report noted that these changes improved accuracy and helped inform best practices for broader industry use.

Regional Trends and Civil Liberties Concerns

New Zealand’s move comes amid increased scrutiny of facial recognition technology in retail settings across the Asia-Pacific region. In Australia, retailers such as Bunnings have faced privacy law violations related to improper use of the technology. These cases have highlighted the importance of robust legal compliance and governance frameworks.

The OPC’s report also addressed concerns about algorithmic bias, particularly with respect to accuracy rates for Māori, Pacific peoples, and other ethnic communities. The Commissioner has called for independent evaluations of FRT systems and the development of clear oversight structures to ensure fairness and avoid discrimination.

Civil rights organizations continue to monitor the rollout of facial recognition in retail, urging transparency, public consultation, and stronger protections for affected communities. The OPC has further recommended that any retailer implementing FRT must first demonstrate that less intrusive measures are inadequate for addressing the risks at hand.

Source: The Post, InsideRetail, MinterEllison

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By Ali Nassar-Smith